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    Eu-jin Kim generated $12,000 in sales revenue from selling 4,000 items at $3 each. After paying $4,000 for the cost of goods sold and $3,000 in overhead expenses, she earned an operating profit of $5,000. After paying $1,000 in interest and $800 in taxes, she earned a profit after tax of $3,200, from which she paid $1,200 in dividends, retaining $2,000 of profit. The profit and loss statement is reported to the government to track taxes, the bank to ensure loan repayment ability, and investors to evaluate profitability and investment decisions.

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    Eu-jin Kim generated $12,000 in sales revenue from selling 4,000 items at $3 each. After paying $4,000 for the cost of goods sold and $3,000 in overhead expenses, she earned an operating profit of $5,000. After paying $1,000 in interest and $800 in taxes, she earned a profit after tax of $3,200, from which she paid $1,200 in dividends, retaining $2,000 of profit. The profit and loss statement is reported to the government to track taxes, the bank to ensure loan repayment ability, and investors to evaluate profitability and investment decisions.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    9 views2 pages

    BMB - PL S - Ren PDF

    Uploaded by

    Ceren
    Eu-jin Kim generated $12,000 in sales revenue from selling 4,000 items at $3 each. After paying $4,000 for the cost of goods sold and $3,000 in overhead expenses, she earned an operating profit of $5,000. After paying $1,000 in interest and $800 in taxes, she earned a profit after tax of $3,200, from which she paid $1,200 in dividends, retaining $2,000 of profit. The profit and loss statement is reported to the government to track taxes, the bank to ensure loan repayment ability, and investors to evaluate profitability and investment decisions.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    Eu-jin Kim Profit and Loss Account

    Ren
    14.02.2023

    1)

    Sales revenue (4000 items @ $3 each) 12000

    Cost of goods sold (@ $1 per item) 4000

    Gross profit 8000

    Overhead expenses 3000

    Operating profit (net profit) 5000

    Interest 1000

    Profit before tax 4000

    Corporation tax @ 20% 800

    Profit after tax 3200

    Dividends paid 1200

    Retained profit 2000

    2) The Government, the Bank, her Investors


    3)
    a) Government: in order to track taxes and prevent fraud
    b) Bank: to make sure she is in a place to pay back her loan
    c) Investors: for them to know if the business is profitable for them and decide
    whether or not to keep the shares accordingly

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